Strategy analysis: what Intuit gained by buying Credit Karma

Intuit, the company behind tax and accounting software such as TurboTax and QuickBooks, acquired Credit Karma, a free consumer service known for credit scores and personalized recommendations of financial products. As a product manager, explain the strategic reasoning behind this acquisition. ```hint Compare the two businesses Look at how often each company's customers interact with it, how each one makes money, and what each one knows about a consumer that the other does not. ``` ### Clarifying Questions - Should I explain the reasoning as it looked when the deal was made, or also judge how it has played out since? - Do you want Intuit's perspective only, or also why Credit Karma's owners would agree to sell? - Should I focus on Intuit's consumer business, or also cover any effect on its small-business products? ### What a Strong Answer Covers - Each company's business model and customer relationship, and the gap Credit Karma filled for Intuit. - Specific sources of value, such as engagement, data, cross-selling and new revenue, with how each would actually work. - Why buying was preferable to building or partnering. - Risks and costs, including price, regulation, privacy and sensitivity to economic conditions. - How you would measure whether the acquisition succeeded. ### Follow-up Questions - What competition concerns might regulators raise about this deal, and how would you address them? - If you led the integration, which joint feature would you launch first, and which metric would tell you it works? - How would an economic downturn change the value of this acquisition?